Undersubscribed on Indonesian offerings
There are two companies struggling to list their shares at Jakarta Stock Exchange (JSX). You may noticed that in the last few years, Indonesian companies were proudly announced oversubscription of their shares or bonds offering. For the first time in years I wrote the above title: Undersubscribed! to mark a new era of investor's decreasing appetite on Indonesian portfolios?
Early this week, I read a story about agriculture company PT CP Prima which cut the size of its IPO (re-listing to be exact) from Rp2 trillion to Rp400 billion. Today, Bisnis Indonesia reported cool respond from overseas investors on PT Bank Bukopin's IPO.
ABN Amro which got 55% allocation in Bukopin's IPO is reportedly want to pull out from the underwriting on poor investor's respond. That would leave local underwriters, Bahana and Indo Premier, with huge responsibility to get local investors' money especially without significant cut in IPO size.
An investment banker said ABN Amro even had offered Rp325 per share, well below the initial target of Rp350 to Rp520 per share. "Still, the demand is not enough," he said.
The closing of bookbuilding was initially scheduled June 16, but no information available on why Bukopin extend the process. Bukopin has few days ahead (till June 23) before the bookbuilding closed and let's see whether the bank would cut the size of its IPO or not.
Another important test will be the closing of the deal of the year (Borneo Lumbung's US$3.2 billion acquisition of two coal mining companies PT Kaltim Prima Coal and PT Arutmin Indonesia) scheduled June 30 with CSFB as the lead arranger of US$2.3 billion syndicated loan.
The raising interest rate in US to curb inflation is to blame, they said. But we may have to blame ourself, why our economy is not sexy enough to attract and bring in more money?
READ MORE!!!
Early this week, I read a story about agriculture company PT CP Prima which cut the size of its IPO (re-listing to be exact) from Rp2 trillion to Rp400 billion. Today, Bisnis Indonesia reported cool respond from overseas investors on PT Bank Bukopin's IPO.
ABN Amro which got 55% allocation in Bukopin's IPO is reportedly want to pull out from the underwriting on poor investor's respond. That would leave local underwriters, Bahana and Indo Premier, with huge responsibility to get local investors' money especially without significant cut in IPO size.
An investment banker said ABN Amro even had offered Rp325 per share, well below the initial target of Rp350 to Rp520 per share. "Still, the demand is not enough," he said.
The closing of bookbuilding was initially scheduled June 16, but no information available on why Bukopin extend the process. Bukopin has few days ahead (till June 23) before the bookbuilding closed and let's see whether the bank would cut the size of its IPO or not.
Another important test will be the closing of the deal of the year (Borneo Lumbung's US$3.2 billion acquisition of two coal mining companies PT Kaltim Prima Coal and PT Arutmin Indonesia) scheduled June 30 with CSFB as the lead arranger of US$2.3 billion syndicated loan.
The raising interest rate in US to curb inflation is to blame, they said. But we may have to blame ourself, why our economy is not sexy enough to attract and bring in more money?
READ MORE!!!
posted by yosef at 4:39 PM
0 Comments:
Post a Comment
<< Home